RAJ BAHADUR NARAIN SINGH SUGAR MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is a sugar factory. It worked during the sugar year 1972 -73. The said sugar year commenced on 1st October, 1972 and ended on 30th September, 1973. The petitioner produced certain quantity of sugar during the period 1st May, 1973 to 30th June, 1973. It claimed benefit of the notification dated 28th September, 1972 issued by the Central Government under Rule 8(1) of the Central Excise Rules. The notification, evidently with a view to encourage increased production of sugar, provided certain concession in the matter of duty where the sugar is produced during the said sugar year, in excess of previous sugar year. It would be appropriate to set out the said notification in so far as it is relevant:

(2.) THE petitioner submitted a claim for rebate in a sum of Rs. 98,460/ - for the said two months' period falling within para 3 of the said notification. It was allowed by the Assistant Chief Accounts Officer of the Central Excise Department, Kanpur. Subsequently, however, the Inspector, Central Excise, Roorkee gave a notice dated 17 -2 -1977 calling upon the petitioner to explain why the aforesaid amount be not recovered from him under Rule 10A of the Central Excise Rules, 1944. The only reason given in the said show cause notice is that during the period May and June, 1972, the production of sugar in the petitioner's factory was nil and if so, he is not entitled to the benefit of reduced duty in terms of the said notification particularly, having regard to Clause A of the first proviso. It is this show cause notice which is questioned in this writ petition.

(3.) FOLLOWING the said bench decision, this writ petition is allowed and the impugned show cause notice is quashed. There shall be no order as to costs.